If the economy is at full employment
A) the entire population is employed.
B) the entire labor force is employed.
C) the only unemployment is frictional unemployment plus discouraged workers.
D) real GDP equals potential GDP.
D
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When the U.S. government runs a budget deficit, its primary way of covering that deficit is
A) printing money. B) defaulting on its payments. C) selling stock. D) issuing bonds.
When we compare shares of income earned by U.S. households, which of the following statements about the distribution of income is true?
A) Shares of income decrease as we move from the lowest quintile to the highest quintile. B) Shares of income increase as we move from the lowest quintile to the highest quintile. C) Shares of income remain fairly constant as we move from the lowest quintile to the highest quintile. D) Shares of income decrease as we move from the lowest quintile to middle quintile, and then decrease from the middle quintile to the highest quintile.